Military Spouse Day – celebrated the Friday before Mother’s Day – marks the contributions of military spouses that enhance readiness and the well-being of those in uniform. And while these spouses deserve recognition every day for the supporting role they play alongside their currently serving and veteran partners, we must do more to ensure they can overcome professional obstacles not faced by their civilian counterparts.

It's well established that military spouses face unique challenges advancing their careers, enduring frequent relocations and fewer employment opportunities in remote assignments. Spouse unemployment (21%, five times higher than the national average) and underemployment cause military families serious long-term financial challenges, from lost opportunity for a dual income to the inability to contribute to retirement. Most importantly for junior military spouses, it can mean an inability to launch their career.

For these reasons, MOAA has championed the Military Spouse Hiring Act: bipartisan, bicameral legislation that would include military spouses among those who are eligible for the Work Opportunity Tax Credit (WOTC).

[TAKE ACTION: Ask Your Lawmakers to Support Military Spouses]

What Is WOTC?

WOTC is a federal tax credit available to employers who hire individuals from groups facing significant barriers to employment, such as veterans, individuals with disabilities, and the long-term unemployed. Unlike previous efforts to enhance the job prospects of military spouses, the Military Spouse Hiring Act would target employers, providing an incentive mitigating employer concerns with inevitable relocation orders.

WOTC has proven effective at lowering unemployment rates for veterans, incentivizing 630,000 new veteran hires from 2019 to 2023. Replicating this success for military spouses would have an immeasurable impact benefiting families that have volunteered for this country.

What’s the Cost?

Expanding WOTC to include a target group for military spouses has an estimated cost of $713 million in lost tax revenue over 10 years. But that figure is far from the whole story:

• The credit means tax revenue will be lost only if a military spouse is hired.
  
  
• The figure assumes every eligible individual would utilize the credit, which is highly unlikely. In reality, not all eligible individuals are hired, and not all employers claim the credit. The actual cost to the government is typically lower than these estimates.
  
  
• The estimate fails to account for the positive economic impact of military spouses’ workforce participation. A study by Blue Star Families found unemployment and underemployment among military spouses create significant societal costs, including increased reliance on public assistance programs and negative impacts on mental and physical health. By facilitating employment among military spouses, the WOTC can reduce these costs and increase future earning potential and taxable income.

Support the Military Spouse Hiring Act Today

With grassroots advocates urging lawmakers to cosponsor the Military Spouse Hiring Act, the bill is gaining traction. We’ve seen an uptick in support since the bill was part of MOAA’s spring Advocacy in Action campaign, with 11 new cosponsors in the House and three in the Senate.

Your efforts make a difference. Reach out to your lawmakers today.